H&M off the pace at Christmas as sales fall short

Fast-fashion giant H&M’s Christmas sales fell short of expectations, it revealed today, fuelling concerns about the health of High Street clothing retailers.

Sales rose 6% in December, the slowest growth since September and behind the 8% analysts had forecast.

The shares fell more than 2% as a result

H&M’s sales, like those of Next, have been hit by unpredictable weather in recent months. Next has also highlighted a spending shift from fashion toward days out.

In contrast, Shop Direct, parent of online department stores Littlewoods, Very and VeryExclusive, today said its fashion sales leapt 16% in the seven weeks to December 23.

Overall sales were up 9% and Shop Direct said it was on track for record full-year sales and profits.

Boss Alex Baldock said a mobile-first strategy and focus on personalisation had paid off. More than two thirds of its sales came from mobile devices, he added.